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Tax lien

Discussion in 'Business Operations' started by LwnmwrMan22, Oct 31, 2005.

  1. LwnmwrMan22

    LwnmwrMan22 LawnSite Platinum Member
    Messages: 4,373

    Anyone here know where I could find out information on how long a tax lien stays on your credit report??

    Back in '99 I was sent a letter that I was supposed to be paying in Sales Tax to MN. I was not aware at the time.

    Anyways, they got me for 4 years of sales tax payments, and put a lien against my equipment.

    It was released in 2000, after the balance was paid off, so I'm hoping that it drops in 7 years. However, I saw one place, that a federal lien stays on for 10.
  2. topsites

    topsites LawnSite Fanatic
    Messages: 21,653

    Before I answer, please read out what I have to say as there is good news further down.

    10 years is the thing now and has been since '97 or so, but it depends a lot on who is looking AND what has happened since. The BEST thing is if only good things have happened, the NEXT best thing is if NOTHING has happened while the absolute worst is if you've had even one more black or negative mark since. So all is good or great if nothing or better, but even ONE mistake is very bad so it is absolutely crucial to go 100% all out to make things right and if you think you can not do so, then doing nothing is good.

    I went through bankruptcy in 1998 and it is now 7 years later and that stuff stays on record 10 years. For the first 4-5 years, life sucked and there was NOTHING I could do, but nothing is good. Around the 5th year I was able to get a credit card and have been working since to get things right (meaning I always pay on time, no late payments, no near-the-limits NEVER over-the-limit, NO BS NOT EVEN ONCE!) and over time I've rebuilt things and nowadays my credit is as good as it was prior to before the whole mess started, it takes solid re-building efforts and then time is of less consequence (but it takes a few years, some good payment records, etc, etc, you really got to show you're making a 100% effort without exceptions).

    Also the credit card I found wasn't the usual crap they send you is like 25% Apr with a 500-dollar security fee... I threw all those away AND threw everything else away for a long time as long as I kept getting those ridiculous offers I knew my credit was not good. Once the ridiculous crap slowed down considerably, I decided to take one shot with one of the slightly better offers (One-time non-refundable fee of 50 dollars, No annual fee, 19.8% apr but pay in full and no penalty - basically a good credit card so long the balance is always paid up every month). I took it real nice and slow at first, no matter what I did I made SURE the money was IN the bank before I even charged anything at all, etc, etc...

    Yes, because even applying for credit if you're not pretty sure it might go, I wouldn't apply for anything that you don't HAVE to apply for, too many applications (whether approved OR denied) is bad, too... As a rule, no more than one credit-app per year, be it for whatever reason (c-card, car, apt, store credit, doesn't matter, any credit app is an app).

    In the end and worst case scenario, what's another year or two? :)

    Hope that helps.
  3. topsites

    topsites LawnSite Fanatic
    Messages: 21,653

    There is one more thing, just so you don't feel so bad lol, I've had it before where I've applied for some 200-dollar credit line and had perfect R-9 ratings all across the board and they denied me. Then I've applied for considerably higher limits someplace else with less than a perfect credit rating and got approved.

    I've even been told by my car insurance carrier (this was years ago) that my insurance rates were high because my credit was bad, even thou I always pay the entire term upfront without payments...

    Somedays I hate the stupid credit record game, it's all it is anyway. Way I see it, approve it or lose it because sooner or later someone else will take you so I wouldn't let it bother you too much, just be careful lol but some of it really is inevitable.
  4. Evan528

    Evan528 LawnSite Silver Member
    Messages: 2,144

    Thats because Insurance companies see a person with a poor credit score as a higher risk. Being irresponsible with credit makes them think you might be irresponsible driving also for some reason..... I guess they have studies that prove this.:dizzy:

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